Scrappage allowance USA style: 'Cash for Clunkers'
The scrappage allowance has crossed the Atlantic. With a very narrow majority, the US Senate in Washington has approved an incentive scheme for owners of old bangers in an effort to support the ailing automotive industry. The campaign has been nicknamed 'Cash for Clunkers'.
The scheme that has got the go-ahead in the States is less generous than its European counterparts, as it applies only to purchases of new vehicles made between 1st July and 1st November 2009. The maximum value that can be claimed is 4,500 US dollars, the precise amount being determined by the eco-friendliness of the replacement. The most important condition attached to the discount voucher is that the fuel consumption of the newly acquired vehicle must not exceed 22mpg; also, it has to be more economical to run than its predecessor.